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The Chair Division operates as a revenue centre and has the following relevant information for a period:
Sales price variance £1000 (U)
Sales volume variance £2000(F)
Net sales volume variance £1200(F)
Budgeted unit contribution margin per unit. £6
Required:
Question (a) Calculate the budgeted sales price.
Question (b) Calculate the actual sales price.
Question (c) Calculate actual unit sales.
Question (d) Calculate budget unit sales.
Question (e) When should a variance be investigated? Explain.
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